PLOT AND PLAN BUILDING CONTRACT

PLOT AND PLAN BUILDING CONTRACT ERF NUMBER : PURCHASER : ANNEXURE 1 : 15 BUILDING PLANS TO SELECT FROM ANNEXURE 2 : SCHEDULE OF FINISHES ANNEXURE 3 : SCHEDULE OF OPTIONAL EXTRAS ANNEXURE 4 : VARIANCE ORDER Page 1 of 15

1. PARTIES 1.1. Owner(s): 1 st Party 2 nd Party First Names Surname Title ID # Passport # (if applicable) Physical Address (domicilium citandi et executandi) Postal Address Code Mobile # Code ( ) Work telephone Code ( ) Code ( ) Work Facsimile Code ( ) Code ( ) Home telephone Code ( ) Code ( ) Home Facsimile Code ( ) E-Mail Address Code Unmarried Divorced Widow/Widower Married (Out of community of Property) Married (In Community of Property) If married In Community of Property then Spouse need to be a party to this Contract Marital Status (Indicate applicable status) Attach Applicable Decree Attach Applicable Death Certificate Attach copy of Antenuptial Contract Attach copy of Marriage certificate Attach copy of Identity Document Attach copy of Passport Company, Close Corporation or other Legal Entity Represented by the 1 st and 2 nd party above duly authorized. Attach the following documentation: For Companies: CM1, CM22, CM27, CM29 and Resolution For Close Corporation: CK1 or CK2 and Resolution For Trusts: Trust Deed, Resolution and Letter of Authority Name Physical Address (domicilium citandi et executandi) Postal Address Code Code (Pty) Ltd CC Other (Specify) Registration # Office Telephone # Office Facsimile # E-Mail Address (hereinafter referred to as "the Owner") Page 2 of 15

and 1.2. Contractor: Zwartenbosch Construction Company Being African Olive Trading 100 (Pty) Ltd trading as Zwartenbosch Construction Company Reg. No: 2004/007284/07 Registered Address: Zwartenbosch Development Office, Zwartenbosch Golf Estate, On R330 route off N2 towards Hankey, Humansdorp District. (hereinafter referred to as "the Contractor") 2. PREAMBLE WHEREAS: 2.1. The Owner has bought the Land defined in clause 3.1.16. 2.2. It is a condition precedent of the agreement of sale in terms whereof the Owner has bought the land that the Contractor shall erect and construct certain building works for and on behalf of the Owner. 2.3. The Owner and the Contractor desire to enter into this building contract for the erection and completion of a dwelling house and outbuildings (if any) by the Contractor for and on behalf of the Owner on the land. NOW THEREFORE IT IS AGREED AS FOLLOWS: 3. DEFINITIONS 3.1. In this agreement, unless inconsistent with or otherwise indicated by the context, the following words or expressions shall have the following meanings: 3.1.1. agreement and/or building contract : this document and all annexures thereto. 3.1.2. agreement of sale : the agreement in terms whereof the Owner has purchased the erf. 3.1.3. "architect : will mean an Architect or Architect Technician as approved by the Zwartenbosch Architectural and Aesthetic Committee (ZAAC) 3.1.4. "attorney : H J Spangenberg t/a Dykes Van Heerden, Humansdorp Physical Address: 11 Kemp Street, Humansdorp Postal Address: Posbus 501, Humansdorp 6300 Telephone number: 042 291 1144 Facsimile number: 042 291 1148 Docex: Docex 2, Humansdorp Bank Account: Hein Spangenberg t/a Dykes Van Heerden Bank Name: First National Bank, Jeffreys Bay Branch Code: 210 515 Bank Account #: 622-0927-6618 3.1.5. bond originator : BetterBond of Port Elizabeth Physical Address: 157 Cape Road, Mill Park, Port Elizabeth Postal Address: P O Box 19390 Lynton Grange 6015 Telephone number: 041 374 0950 Facsimile number: 041 374 0949 3.1.6 "building contract price": the amount payable to the Contractor by the Owner for the works as set out in clause 6.3.1 3.1.7 "building plan": the plan identified in terms of clause 6.1 and subject to clause 6.18. Page 3 of 15

3.1.8 contract price adjustment provisions : the building contract price adjustment procedure provided for in clause 6.4. 3.1.9 "date of commencement": the date on which the Contractor takes occupation of the land and commences building operations, such date being a date determined by the Contractor after approval of the building plans, approval of the Owner's bond and connection of building water to the site by the Owner. 3.1.10 days : Monday through Friday, except for national public holidays. 3.1.11 development : the secure housing development known as Zwartenbosch Golf and Lifestyle Estate, situated on Portion 24 of the Farm Zwartebosch 347, Administrative District Humansdorp, Eastern Cape Province. 3.1.12 "development plan": the site plan for the whole development which includes the perimeter fence, the roads and the security gate. 3.1.13 default specifications : Schedule of finishes and appliances as per Annexure 2 3.1.14 effective date : the date on which this agreement is signed by the Contractor, and as such takes effect. 3.1.15 "final completion form": a completion form signed by the Owner certifying his satisfaction that the works have been completed in a professional and satisfactorily manner and as from which date of signature the Owner shall have no claim against, and the Contractor shall have no further obligation towards the Owner in terms of this building contract, save and except for the Contractor's obligations as set out in clause 6.25. 3.1.16 "land": Erf ; on the development of Zwartenbosch Golf & Lifestyle Estate, Ptn 24 of the farm Zwartebosch 347, measuring square metres approximately, purchased in terms of an agreement of sale subject to the provisions of clause 4.2. 3.1.17 "specification": the specification including a schedule of finishes and/or P.C. (prime costs) and appliances amounts allowed for finishes annexed hereto as Annexure 2 and subject to clause 6.18. 3.1.18 optional extras : schedule of allowed non-standard specifications at P.C. (prime cost), annexed hereto as Annexure 3 subject to clause 6.18. 3.1.19 variance order : a written agreement (Annexure 4), as envisaged in clause 13.1 concluded by the parties to amend the building plan and/or specifications. 3.1.20 "works": the construction, completion and finishing-off of a private domestic dwelling house and outbuildings (if any) substantially in accordance with the building plan, Annexure 1, and specifications as per Annexure 2 respectively. 3.1.21 Seller : Desert Charm Trading 205 (Pty) Ltd t/a Zwartenbosch Golf & Lifestyle Estate 3.2 Clause headings have been inserted for reference purposes only and shall be disregarded in the interpretation hereof. 3.3 Words signifying singular include plural and vice versa and words importing one gender shall include the others. 4 BUILDING CONTRACT 4.1 The parties enter into a building contract at an agreed price as set out in clause 6.3.1 for the completion of the works on the land by the Contractor for and on behalf of the Owner on the terms and conditions set out hereinafter. Page 4 of 15

4.2 This building contract is linked to the agreement of sale in respect of the land as described in clause 3.1.16 and in the event of this building contract being cancelled for any reason whatsoever, then the agreement of sale between the Seller and the Owner (as purchaser) shall at the discretion of the Seller still be enforced or can be cancelled in which case the Seller will notify the Owner without any further notice being required. 5 POSSESSION AND OCCUPATION 5.1 The Contractor, his agents, servants and sub-contractors shall at all times until the works have been completed and the Owner has signed and handed to the Contractor the final completion form, be entitled to enter and be present on the land for construction purposes. At no time whatsoever shall the Owner be entitled to make claim, attach or in any way claim possession or retention of any of the Contractor's (including his agents, sub-agents and/or employees ) tools, equipment or building material and by signature hereof the Owner waives all or any right which he may have acquired in this regard. 5.2 The Owner shall be obliged to take possession of the land by not later than the last business day of the month in which the works have been completed once he has adhered to paragraphs 5.2.1 and 5.2.2 below, and it shall be incumbent on the Owner to monitor progress of the works in order to enable him to make whatever arrangements may be necessary or required by him to: 5.2.1 Sign and hand to the Contractor the final completion form prior to taking possession and occupation of the land and works; 5.2.2 Make payment of all or any amounts which may then still be due by him to the Contractor. 5.3 Should the Owner fail to sign and hand to the Contractor the final completion form and fail to take occupation or possession of the land within thirty (30) days after notice to him, it shall irrevocably be deemed for all purposes hereunder, that the Owner has effectively signed the final completion form and has effectively and fully taken occupation and possession of the land upon the expiry of the thirtieth (30 th ) day after the date of such notice. 6 BUILDING PLAN AND CONTRACT PRICE 6.1 The Owner herewith elects building plan no, annexed hereto as annexure 1, which will form the subject matter of the works. 6.2 The building contract price per square meter shall be R6500 (six thousand five hundred rand) inclusive of Value Added Tax, subject to contract price adjustment provisions as per paragraph 6.4. 6.3 The total building contract price shall be: 6.3.1 Building price (excluding extras): R Optional extras (Annexure 3): TOTAL building contract price: R R ( rand) inclusive of VAT (value added tax) at fourteen percent (14%), payable to the Contractor in one of the following instances: Page 5 of 15

6.3.1.1 Bond or Loan is obtained as per paragraph 7 6.3.1.1.1 Paid to the contractor by way of: 6.3.1.1.1.1 A deposit or irrevocable bank guarantee to the Contractor s Attorney in the amount of minimum ten percent (10%) of the building contract price within five (5) days from bond approval or if the financial institution where the application for the loan is made approve an amount less than the loan amount, the Owner shall within seven (7) days of such approval: 6.3.1.1.1.1.1 advise the Contractor whether he accepts the lesser amount; and 6.3.1.1.1.1.2 pay the difference between the loan amount and such lesser amount to the Contractor s Attorney as a second deposit. 6.3.1.1.1.1.3 Paid to the Contractor by way of progress payments OR 6.3.1.2 If no Bond is needed and the Purchaser will fund the building contract price on a cash basis: 6.3.1.2.1 Paid to the contractor by way of: 6.3.1.2.1.1 An irrevocable bank guarantee to the Contractor s Attorney for the full building contract price within twenty (20) days from signature of this contract by the Contractor. 6.3.1.3.1.2 Progress payments 6.4 Contract Price Adjustment Provisions 6.4.1 The Contractor retains the right to re-determine and adjust the total building contract price to fair market rates, at any time after the expiration of six (6) months from the effective date and at any time after the expiration. 6.4.2 The contract sum will be adjusted in accordance with the Contract Price Adjustment Provisions (CPAP) as set out in the CPAP Manual and Reference guide as prepared by the Joint Building Contracts Committee (JBCC) latest series, and any amendments thereto. The Joint Building Contracts Committee latest series, Contract Price Adjustment Provisions (JBCC CPAP) formula provides for 85% of the contract amount to be subject to escalation, the remaining 15% to stay fixed. Furthermore, a factor must be introduced to take account of the cash flow of payments, usually 0,6 is acceptable if a short method of calculation is employed. The total escalation during the contract period is therefore calculated by multiplying the anticipated tender amount by 0,85 and 0,6 then by the estimated monthly percentage increase in the JBCC CPAP formula and by the contract period expressed in months. 6.5 Progress payments shall be made at the request of the Contractor in such amounts as may be authorised by the inspection committee of the financial institution holding a bond over the land and in the event of a cash purchaser, the amounts determined by the Architect as reflected in his certificates of the percentage of completion. The Owner herewith irrevocable authorise the Attorney to sign all documentation and/or authorisations required by the bond holder/financial institution to effect such progress payments. Such signature by the attorney shall be deemed as final proof of the percentage of completion and authorisation for payment to the Contractor by the financial institution holding a bond over building on the land. Page 6 of 15

6.6 "First progress payment" means the amount payable amounting to ten and a half percent (10.5%) of total building contract price to the Contractor on completion of the first section of the works if so required namely: 6.6.1 Foundation 6.7 "Second progress payment" means the amount payable amounting to: - twenty five percent (25%) of total building contract price for a double storey house - thirty three percent (33%) of total building contract price for a single storey house to the Contractor on completion of the second section of the works if so required namely: 6.7.1 Brickwork to plinth 6.7.2 Filling 6.7.3 Surface bed 6.7.4 Door Frames 6.7.5 Brickwork to sill 6.7.6 Windows 6.7.7 Brickwork to head 6.7.8 Brickwork to plate / slab 6.8 Third progress payment" means the amount payable amounting to eight percent (8%) of total building contract price to the Contractor on completion of the third section of the works for a double storey house. The third progress payment in the case of a single storey house will be null percent (0%) as it has already been claimed as part of the second progress payment. 6.8.1 Door Frames 6.8.2 Brickwork to sill 6.8.3 Windows 6.8.4 Brickwork to head 6.8.5 Brickwork to plate/slab 6.9 "Fourth progress payment" means the amount payable amounting to twenty nine percent (29%) of total building contract price to the Contractor on completion of the fourth section of the works if so required namely: 6.9.1 Trusses 6.9.2 Brandering 6.9.3 Sills 6.9.4 Plastering 6.9.5 Ceilings 6.9.6 Hot and cold water 6.9.7 Geyser 6.9.8 Sanitary plumbing 6.9.9 Sanitary fittings 6.9.10 Conduits 6.9.11 Wiring 6.9.12 Electrical board / main connections 6.9.13 Light fittings 6.10 Fifth progress payment" means the amount payable amounting to nineteen and a half percent (19.5%) of total building contract price to the Contractor on completion of the fifth section of the works if so required namely: 6.10.1 Stove 6.10.2 Glazing 6.10.3 Wall tiling 6.10.4 Floor covering 6.10.5 Skirting 6.10.6 Doors (house and garage) 6.10.7 Painting Page 7 of 15

6.11 "Sixth and Final progress payment" means the amount payable to the Contractor on the completion of the works, upon which payment (amounting to eight percent (8%) of total building contract price) together with the signature of the Final Completion Form by the Owner but subject to clause 6.25 the Contractor shall be completely discharged from its entire obligation in terms of this agreement. The sixth section of the works if so required namely: 6.11.1 Cupboards 6.11.2 Kitchen units 6.11.3 Appliances 6.11.4 Cleaning of site 6.11.5 Grass laid 6.11.6 Paving 6.12 Should the inspection committee referred to in clause 6.5 fail to authorise any progress payment or the final payment as contemplated in clauses 6.6 to 6.11 within four (4) days of a written request by the Contractor for it to do so, the Owner shall immediately become liable for such payment and the provisions of clause 10.4 shall mutatis mutandis apply upon expiry of the fourth (4 th ) day after the date of such request. The Contractor may in such circumstances, without prejudice to any legal rights it may have, withhold occupation from the Owner. 6.13 Should a cash purchaser fail to make any progress payment or the final payment as contemplated in clauses 6.6 to 6.11 within four (4) days of a written request by the Contractor for the Owner to do so, the Owner shall immediately become liable for such payment and the provisions of clause 10.4 shall mutatis mutandis apply upon expiry of the fourth (4 th ) day after the date of such request. The Contractor may in such circumstances, without prejudice to any legal rights it may have, withhold occupation from the Owner. 6.14 Should there be any dispute relating to the completion of any section of the works, in particular the sixth and final progress payment, then and in such event, a certificate issued by the Architect acting as an expert and not as an arbitrator, shall be sufficient and conclusive proof of the state of completion of such works. 6.15 Notwithstanding amounts having become payable to the Contractor as contemplated in clauses 6.6 to 6.11, the Contractor may in its sole discretion and at any time claim one or more progress payments or any part thereof after the date upon which any portion or section of the works have been completed and such amounts have accrued in favour of the Contractor and in so doing the Contractor shall not be deemed to have waived any of its rights. 6.16 Notwithstanding the above and the actual state of completion of any particular section or portion of the works, the parties may at any time agree that any amounts have accrued in favour of the Contractor whereupon the Contractor shall be entitled to make claim for the payment of such amounts agreed upon. 6.17 The Owner acknowledges that he has inspected the building plan and the specification attached hereto (which shall both form part of this agreement), for the type of house and outbuildings, (if any), to be constructed as the works. 6.18 Notwithstanding the meaning of 'building plan' or 'specification' or optional extras as defined in clause 3, or any diagram, sketch or plan which may have been annexed hereto and which indicate the position of the works in relation to the erf boundaries, the parties specifically agree that the contractor shall be entitled to adapt or amend the building plan and/or specification, sitting and/or orientation after giving notice to the Owner, the Architect and ZAAC s and obtaining ZAAC s approval, in any way which the Contractor considers necessary in its sole and absolute discretion: 6.18.1 to meet any or all the requirements of any competent authority; 6.18.2 to meet any special features of the land not taken into account by the architect; Page 8 of 15

6.18.3 to meet any special impediments such as water, sewer or electrical lines either above or underground, or any rock, geological or other soil condition which were not known or apparent at the design stage of the works; 6.18.4 to give effect to any changes in materials, finishes or fittings which may not be readily available at the time due to a shortage in supply of such materials, finishes or fittings, without however detracting from the quality of the works. 6.19 Any such adaptation in terms of clause 6.18 shall be deemed to be the building plan and/or specification agreed upon between the parties it being specifically agreed that under no circumstances will any alterations or additions be acceptable by the Contractor at the insistence or request of the Owner once the bond application has been approved except when a written variation order which includes prices have been agreed to and signed by the parties. The extra costs, if any, to meet conditions as set out in paragraph 6.18 need to be certified by a civil or electrical engineer and such costs need to be included as part of the first progress payment. 6.20 The Owner hereby irrevocably appoints the Contractor as his agent to apply for and obtain such approvals, consents or authorisations as may be required for approval of the building plan. 6.21 The Contractor shall begin the works within a reasonable time after the signing of this agreement and after services have been installed having regard to its other building commitments, provided that it shall not be obliged to begin the works unless and until: 6.21.1 the Owner has furnished adequate proof to the satisfaction of the Contractor that a building loan has been raised or that the Owner is financially able to meet his commitments in terms of this contract; 6.21.2 all the required consents, approvals or authorisations have been obtained; and 6.21.3 final sketch plan and associated cost variations have been approved. 6.22 Subject to any reasonable extension/s permitted, the Contractor shall generally complete the works within six (6) months from the date of commencement. 6.23 Should the completion of the works be delayed by any cause whatsoever including force majour or building industry holidays, whether statutory or generally recognised as customary in the industry, which may fall within the contract period, or in the event of any dispute, strike, lockout, squatting, invasion or any other situation causing delay, then the Contractor shall be entitled to a fair and reasonable extension of time for the completion of the works and the Owner shall not for that reason have any claim against the Contractor, whether for damages or otherwise. 6.24 Any unfixed materials required for the works and delivered to the land shall not become the property of the Owner until they have been paid for. Excess material delivered to the land shall remain the property of the Contractor. 6.25 Defects 6.25.1 The Owner shall before the date of completion, when requested by the Contractor to do so, attend an inspection of the works and compile a list (hereinafter referred to as the first list ) signed by both the Contractor and the Owner setting out any items relating to the works requiring repair by the Contractor. The Owner shall upon date of completion but prior to occupation deliver to the Contractor a list (hereinafter referred to as the second list ) signed by himself setting out items relating to the works requiring repair by the Contractor constituting latent defects and which did not exist at the time when the first list was jointly compiled by the Contractor and Owner. Page 9 of 15

6.25.2 Upon repair of such items as reasonably require repair, the Owner shall sign the contractor s final completion form and shall thereafter be irrevocably deemed to have accepted that the works is in a fit, proper and workmanlike state and condition in all respects and the Contractor shall be completely absolved and discharged from any further obligation towards the Owner in terms hereof and the owner may then take occupation. The Contractor shall, however, repair all roof leaks which may manifest themselves within a period of twelve (12) months reckoned from date of signing thereof. 6.25.3 Any dispute as to whether the said repairs in terms of this clause have been satisfactorily carried out shall be referred to ZAAC who will appoint a representative acting as an expert and not as an arbitrator and his decision thereon shall be final and binding on the parties. Should the Owner fail to submit the second list within the aforesaid period, or fail to sign the final completion form on receipt, it shall be deemed that he has accepted the works in a fit, proper and workmanlike state and condition in all respects and the Contractor shall have no further obligation towards the Owner in terms hereof. 6.26 The Owner shall on demand be responsible for entering into any agreement or into any other arrangement that may be required for the supply of water and electricity to the land. 6.27 The Owner agrees and undertakes to cede to the Contractor a sum equal to the building contract price or the balance thereof outstanding from time to time from the proceeds of the loan and to sign any authority for payment thereof direct to the Contractor or his nominee by the financial institution in the form of building draws or periodic payments. 6.28 Where any section of the works has been partially completed, the value of the completed part shall be a fair and reasonable proportion of any progress payment and a certificate signed by any director or manager of the Contractor specifying the value of the works shall be sufficient and conclusive evidence of that value. 6.29 The Owner undertakes to approve the schedule of finishes or a list of provisional amounts allowed for finishes with the Contractor within fourteen days from date of signature hereof. Should the Owner fail to approve such schedule or list within the aforesaid period, the Architect is hereby irrevocably authorised by the Owner to decide and approve such schedule or list for and on behalf of the Owner. It is recorded that the Contractor will proceed with the works according to the default specifications. 6.30 The Contractor shall in its sole discretion and at its option be entitled to postpone the date of commencement of the building works for a reasonable period of time: 6.30.1 should transfer of the land not have been registered in the name of the Owner within sixty (60) days after date of subdivision or should it transpire that the land will not be transferred to the Owner within a reasonable period; 6.30.2 should the building plans and/or any other approvals and consents to be obtained from the local authority not have been obtained within ninety (90) days from date of signature hereof by the Contractor; 6.30.3 should events make it difficult or impossible for the Contractor to proceed with the works such as political upheaval, riots, squatting, invasion, boycotts, strikes, lock-outs or any other situation which may be dangerous for the general safety of the Contractor or any of its workers, servants or sub-contractors; 6.30.4 if, on the date of commencement of the works, contract prices for similar building/s in the vicinity of the land at that point in time exceed the building contract price provided for herein by five percent (5%); 6.30.5 should registration of the land into the name of the Owner be delayed by the Owner, the Contractor shall be entitled after written notice to the Owner, to escalate the building contract price by two percent (2%) per month. Page 10 of 15

6.31 On the happening of any of the events set out in clause 6.30, the Owner shall have no claim what so ever against the Contractor to commence or complete the works or a claim for damages. It is specifically agreed that the Contractor's rights as contemplated in this clause 6.30 will not cause or effect the acquisition of the land or entitle the Owner to cancel this agreement. 7 BOND FINANCE 7.1 The Owner undertakes to apply to the bond originator for, obtain and receive finance/loan or a bond from a bank or other recognised financial institution in the amount of R ( Rand) within twenty (20) days from date of signature hereof, both days inclusive, or any extension of time granted in writing to the Owner by the Contractor. The Owner shall deliver an irrevocable bank guarantee in this amount in a form acceptable to the attorneys and Contractor within seven (7) days after the finance/loan or bond had been approved. 7.2 The Owner undertakes to sign all and any documents relating to such application and to do all such things as may be required to make application for a loan/finance/bond to a financial institution. The Owner acknowledges and declares that he is familiar with all the relevant requirements of financial institutions relating to the granting of finance/loans/bonds based, inter alia, on the Owner/applicant's income and liabilities, ability to pay and the total exposure of the Owner towards the relevant financial institution and he warrants that he qualifies in all respects for the grant of a loan/finance/bond to him by the relevant financial institution in the amount set out in clause 7.1. 7.3 The Owner hereby irrevocably authorises and appoints the Contractor or its agent s in rem suam to make application to the bond originator and/or other financial institution - on his behalf - for the loan/finance/bond set out in clause 7.1and undertakes immediately to sign all or any documents relating thereto. In order to attain these objectives the Owner undertakes to furnish the Contractor or its agents or attorneys with all the required information and documents (and to sign all required documents and/or forms) so that application may be made for and on behalf of the Owner for such loan/finance or bond. The Owner hereby irrevocably authorises the bank, building society or financial institution that refuses/declines or qualifies the Owner's own application, to furnish all documents and supporting annexures, which the Owner had supplied to such institution in support of his application, to the Contractor, its agents or attorneys and hereby expressly waives any privilege or banker-client fiduciary relationship. 7.4 The Owner undertakes within seven (7) days from date of signature hereof to apply comprehensively and exhaustively for the said loan/finance/bond, to obtain and receive the said loan/finance/bond and to inform the Contractor in writing within seven (7) days after date of such application, of the grant of such loan/finance/bond to him. 7.5 Any failure by the Owner to immediately, punctually and comprehensively comply with the requirements of clause 7.4 shall irrevocably be deemed by the parties to constitute a vital and material breach of this agreement. 7.6 Interim interest charged on the loan/finance or bond by the bank or financial institution shall expressly be for the account of the Owner and will be payable on demand. Page 11 of 15

8 BREACH BY THE OWNER 8.1 Should the Owner commit any breach of this agreement and remain or persist in such breach after the expiry of a period of seven (7) days after despatch of a written notice to him requiring him to rectify or remedy such breach, then the Contractor shall be entitled, without prejudice to any other remedies that it may have in law, to: 8.1.1 Immediately issue summons against the Owner for specific performance and payment of the full balance of the building contract price plus interest and all other amounts still due in terms hereof; or 8.1.2 Cancel this agreement and to recover all damages suffered by the Contractor as a result of such cancellation ; or 8.1.3 Immediately cancel this agreement without the intercession of any court and whereupon all amounts paid by the Owner in terms hereof will be forfeited to the Contractor as its sole and exclusive property and which shall be retained by it as partial rouwkoop' and/or as a genuine pre-estimate of liquidated damages suffered by it as a result of such cancellation. The parties agree that any amount thus retained represents a fair and reasonable estimate of the Contractor's damages. 8.2 Notwithstanding the provisions of clause 8.1 hereof and without prejudice to any of the Contractor's other rights, the parties agree that an amount of R 50,000 (fifty thousand rand) will be forfeited by the Owner to the Contractor as an agreed penalty should this agreement be cancelled for any reason whatsoever by the Owner. The parties acknowledge and agree that such penalty is a fair and reasonable amount, proportionate to the damages suffered (or which may be suffered) by the Contractor, within their contemplation and is deliberately and specifically enacted to provide for the Owner's failure or default. 8.3 It is hereby agreed that the Contractor will have a builder s lien over the property until the Owner has, according to this contract, paid all outstanding amounts. 9 DOMICILIA 9.1 All or any notices given by the contractor to the owner shall be deemed to have been received by and communicated to the Addressee on the date on which the same is delivered to the owner's domicilium citandi et executandi by hand or courier service and the seventh (7th) day after posting thereof, if sent by prepaid registered post to the owner's domicilium. 9.2 The Owner chooses domicilium citandi et executandi at the address contained in clause 1.1. 9.3 The Contractor chooses domicilium citandi et executandi at its address as contained in clause 1.2. 9.4 Notwithstanding anything to the contrary contained herein any and all notices by the Owner to the Contractor shall only be regarded as validly effected if such notice is delivered by hand to the Contractor and a true copy thereof is also simultaneously delivered by hand on the same day to the attorneys. 10 JURISDICTION, LEGAL COSTS AND INTEREST 10.1 This agreement is governed in terms of the laws of the Republic of South Africa. 10.2 The parties hereby consent to the jurisdiction of the Magistrate's Court pursuant to section 45 of the Magistrates' Courts Act, No 32 of 1944, or any amendment thereof. The Contractor shall, however, have the right at its sole option and discretion to institute proceedings in any other competent court. Page 12 of 15

10.3 The Owner hereby agrees that should the Contractor utilize any legal services such legal services plus VAT thereon will be paid by the Owner on the scale as between attorney and own client. 10.4 Should any amounts due and outstanding under this agreement not be paid on due date in terms of this agreement, then the Owner shall be liable to pay to the Contractor interest (compounded monthly) on such outstanding amounts calculated at the rate of two percent (2%) above the ruling prime commercial overdraft rate as charged by First National Bank from time to time during the period in which the amounts are overdue. 11 AMENDMENTS AND CESSIONS 11.1 This Agreement constitutes the whole and entire building contract between the parties and no stipulation, promise, warranty, representation or condition which is not recorded herein shall be binding on the Contractor unless same is reduced to writing and signed by or on behalf of both parties. 11.2 No alteration or variation of whatever nature of this agreement, including this clause, shall be of any force and effect unless same is reduced to writing and signed by both the Owner and the Contractor. 11.3 The Owner shall not cede, assign, make over, alienate, pledge, burden or otherwise encumber any of his rights in terms of this agreement without the prior written consent of the Contractor first being had and obtained. 11.4 It is recorded that the Contractor can, without notice to such effect, cede, assign, make over, alienate, pledge, burden or otherwise encumber any of his rights in terms of this agreement subject to a specific provision that such third party acknowledge to fulfil all the terms and conditions contained in this agreement. 12 INDULGENCES AND WAIVERS 12.1 Any latitude, grace or extension of time which may be allowed or permitted by the Contractor to the Owner in respect of any payment provided for herein, or any matter or thing which the Owner is bound to perform or observe in terms hereof, shall not under any circumstances be deemed to be a waiver of any of the Contractor's rights hereunder at any time to require strict and punctual compliance with each and every provision or term hereof or as a waiver of any of the Contractor's other rights hereunder. 12.2 The remission of any payment, grant of any extension of time or relaxation of any term or condition or condonation of any breach hereof or any other permission, relaxation or indulgence which may be afforded by the Contractor to the Owner shall not be deemed to be a waiver or a novation of any of the Contractor's rights in terms hereof. 12.3 Unless expressly otherwise confirmed in writing by the Contractor, no receipt of any payment by the Contractor or its agents or attorneys, will in any manner whatsoever prejudice the Contractor or be deemed to be a waiver, withdrawal or abandonment of any cancellation or right to cancellation which the Contractor may have acquired prior to such receipt. 13 BUILDING PLANS, BUILDING OPERATIONS AND DEVELOPMENT 13.1 The Owner hereby irrevocably undertakes and binds himself to finalise the building plans with the Contractor and Architect/Architect Technician within fourteen (14) days from signature of this agreement by the parties and failing which the Owner agrees to accept the plan annexed hereto as Annexure 1 as the final plan and no further alterations or amendments to the plan shall be permissible except when a written variation order which includes prices have been agreed to and signed by the parties. Page 13 of 15

13.2 The Owner acknowledges that the property is not fully developed, that building operations will take place upon adjacent or neighbouring sub-divisions or erven and that the said building operations may cause him inconvenience. The Owner acknowledges and agrees that he shall have no claim of whatever nature against the Contractor, its builders or any sub-contractor arising from any such building operations. The Contractor undertakes to use its best endeavours to minimise all discomfort to or any infringement of the privacy of the Owner. 14 ANNEXURES TO THIS AGREEMENT 14.1 Annexure 1: Building plan in terms of clause 6.1 and 13.1. 14.2 Annexure 2: Schedule of finishes and Appliances with provisional amounts allowed for in terms of clause 6.17. 14.3 Annexure 3: Optional Extras with provisional amounts allowed for in terms of clause 6.17 14.4 Annexure 4: Variance Order 14.5 In the event of a dispute in fact or a different interpretation of any meaning contained in this agreement, specification and building plan, the facts or interpretation contained in this agreement shall supersede that of the specification and/or building plan, whilst the same provision shall apply inter alia with regard to differences between specification and building plan in which event the facts or interpretation contained in the specification shall supersede that which is contained in the building plan. 15 AGENTS COMMISSION The Agent The Contractor shall be liable to pay to the agent commission in such amount as agreed between the Contractor and the agent, being a fixed amount of 2.3% (two point three percent) inclusive of Value Added Tax. All commission is deemed to be earned and shall become payable on date of occupation by the Owner, provided that the full contract price was paid in full on such date. If this agreement is cancelled, after proclamation, as a result of the Owner s breach of agreement, the Owner shall be liable to pay to the agent the commission on demand. 16 MORA INTEREST If any amounts due under this agreement are not paid or secured by acceptable guarantees on due date in terms of this agreement, the Owner shall be liable to pay the Contractor interest on such outstanding amounts calculated at the effective interest rate as quoted by First National Bank at their prime overdraft rate at the time from the due date to actual date of payment or furnishing of the guarantee, as the case may be. 17 CAPACITY OF PARTIES Should the Owner sign this agreement as Trustee or Agent for a Company, Close Corporation or Trust to be formed, the signatory shall be deemed to be personally, jointly and/or severally liable in terms of this agreement. Should the Company, Close Corporation or Trust not be incorporated or not ratify and adopt this agreement within 30 (thirty) days of the date of signature hereof. Page 14 of 15

18 OTHER TERMS a. b. SIGNED by the Owner in the presence of the witnesses at on this day of 20 AS WITNESSES: 1. Owner 2. The Owner is assisted herein insofar as may be legally required and/or necessary by his/her spouse and/or guardian who binds her/himself to the Contractor as surety and co-principal debtor, hereby renouncing the benefits of division, excussion and cession of action. SIGNED by the Owner s spouse / guardian in the presence of the witnesses at on this day of 20 AS WITNESSES: 1. Spouse / Guardian 2. SIGNED by the Contractor in the presence of the witnesses at on this day of 20 AS WITNESSES: 1. 2. Contractor Page 15 of 15